Revenue mobilization and performance of local governments in Uganda: a case study of Bitereko and Kany Abwanga Sub counties, Mitooma District

Abstract

This study was conducted to find out the effect of local revenue mobilization on performance oi' local governments in Uganda. To achieve this the researcher developed specific objectiws including: To establish the effect of Revenue mobilization on service delivery in 13itereko and Kanyabwanga sub counties, to find out the effect of revenue mobilization on infrastructure• development in Bitereko and Kanyabwanga sub counties, and to determine the effect re, enuc mobilization on local capacity of the community Bitereko and Kanyabwanga sub counties. The study adopted descriptive, cross section, correlation research designs to come II ith the cl'/eet and relationship between revenue mobilization and performance of local governments 01· Kanyabwanga and Bitrerko sub counties. The population involved in the study 11as 1526 Ii-om who the sample of 332 respondents was selected in consultation to 1971 Krejicie and Morgan 1,,r determining a sample size. Data was collected using questionnaires and intervie11s ancl it '"" analyzed using Scientific Package for Social Scientists (SPSS). Findings indicated revenue mobilization has affected service deliver) 111 llitercko an,I Kanyabwanga sub counties; it was found out that revenue 111obiliza1ion fi.1llo11ecl a budget II hicl, was generated fro111 the budget conference of sub counties that generated revenue services 1,,r budget performance in line with planning cycle or govcrn111ent and submission or 111andatc>1·, docu111ent like annual work plan, budget and enhancement plans, the findings also indicated !11:11 revenue mobilization plays an important role in infrastructure developmem: and the researc·hn found oul that the community's capacity determine rnnount or revenue to be collected in the sub county. The capacity of the co111munity determines the taxable capacity and tax:1blc base 1,>1· which the local govern111ents can put emphasis through revenue enhancement plans. It was therefore concluded that there is positive relationship between revenue mobilization and the perfor111ance of local governments specifically in 13itereko and Kanyalrnanga sub counties in terms of social services delivery, infrastructure de, elopment and local capacil) or th,· co111munity. Recommendations suggested that sub counties should always work hard to increase local revenues by identifying the un tapped resources and be able to exploit available resources and the population to create new markets so that revenues can be increased to also increase 011 social services already being provided in such sub counties: Revenue mobilization should he· improved to contribute to the improvement in infrastructure development like roads. schools. health centers, water and sanitation among others, usage in the country in terms of quantit) and quality; and that revenue mobilization as an activity should be integrated in work plans and budgets at all levels from the village level, parish, level and sub county level and then to other subsequent levels of'the District and National levels.